BHP, the Australian mining company that also diversified into ship chartering, has an important mission statement: "BHP's purpose is to bring people and resources together to build a better world." Rashpal Bhatti (Bhatti) Vice President of BHP's Maritime and Supply Chain Excellence (MSCE) arm endeavoured to bring this purpose to life. The case discusses BHP's efforts to reduce emissions from its chartering business by transitioning from pollutive conventional fuels to alternative fuels. Maritime transport was the backbone of the global economy. It accounted for 75% of global freight activity, with nearly 80% of globally transported goods being transported by sea, and yet it utilised only one-fifth of the energy or 225 million tonnes of oil equivalent. This made it economical to transport large volumes and weights across vast distances which led to maritime trade doubling between 1990 and 2020. Unfortunately, as maritime trade grew, so did the demand for energy-dense, inexpensive, highly pollutive fossil fuels. To reduce emissions, many in the maritime ecosystem, including BHP, explored the use of alternative fuels. Recognising that the use of alternative fuels involved convincing multiple stakeholders, first, Bhatti secured buy-in from his colleagues and team. Then, the team measured ship emissions and did not charter ships that had poor emission ratings. Next, their research found that Liquified Natural Gas (LNG) produced 30% emission abatements and was the most feasible. Finally, BHP ran tenders for LNG-fuelled ships and for LNG bunker fuel supply. The efforts paid off, and in February 2022, Mt. Tourmaline was delivered to Singapore's Jurong Port for its first LNG bunkering. Bhatti realised the entire endeavour was successful not only because of LNG fuel innovations but also due to the efforts put forward by stakeholders in the maritime industry, such as vessel owners, regulatory authorities, ship charterers and fuel suppliers.
Shantanu Bhattacharya, Professor of Operations Management at Singapore Management University (SMU), observed how waste in Singapore was incinerated before it was poured into the country's only landfill. The government wanted to maximise the country's limited land resources by using waste-to-energy (WTE) plants that would decrease the volume of waste that was deposited in landfills. Additionally, the heat generated could be used to generate electricity. In 2005, Keppel Seghers was awarded a public-private partnership (PPP) contract to develop the country's fifth WTE plant. This would be the first incineration plant in Singapore to employ technology from a local company. The PPP structure would allow the government to save on the capital outlay and capitalise on private sector expertise. Keppel Seghers would have to ensure that it would be able to provide sufficient incineration capacity. Bhattacharya supported the waste management strategy but knew the landfill had a limited lifespan. He hoped to study more innovative waste management solutions in the future.
Set in June 2021, the case documents the evolution and outcomes of CALISTA, a trade facilitation platform launched by Global eTrade Services (GeTS), Singapore, in 2018. With an affordable subscription model, CALISTA aided smooth trade flow by enabling single window management of the compliance, logistics, and trade finance. The COVID-19 pandemic disrupted international trade flows and altered consumer behaviour, spurring the boom of eCommerce. The scenario prompted the trade community to embrace trade automation in its quest for predictability, visibility and efficiency. Consequently, CALISTA's sales nearly doubled. However, driven by a legacy mindset, many SMEs were still doing trade the old-fashioned way. Kok Keong Chong, the Chief Executive Officer of GeTS, wondered how he could bring on board more customers to CALISTA.
Chinese electric vehicle (EV) company NIO had launched Battery as a Service (BaaS), in a competitive bid to reduce vehicle price and make its products more attractive to its consumers. By 2021, almost 40% of its consumer base had switched to using BaaS, and NIO had plans to expand its BaaS services further. BaaS offered four key benefits. Firstly, it reduced the price of the EV by about US$ 10,800. Secondly, it allowed consumers to do multiple battery swaps for a nominal US$ 152 monthly subscription fee. Thirdly, it allowed consumers to swap their batteries in a short time of 3 to 5 minutes, as opposed to 45 minutes recharge at a charging station. To support its BaaS program, NIO had installed 301 battery-swapping stations across China by July 2021, and had plans to complete 3000 swapping stations globally by 2025. Fourthly, BaaS supported a circular economy, as it potentially helped recycle batteries in a more controlled fashion, which could then be reused in other industries (like for solar panels in homes). However, NIO's BaaS entailed a few shortcomings despite its promise. Its implementation involved the construction of swapping stations, deployment of automated technology, and maintenance of battery stocks at stations, which was an expensive affair. Besides, technology for batteries had started to advance, and batteries could last longer in terms of miles travelled based on a single charge, reducing the need for frequent recharge at swapping stations. Given the scenario, was NIO's BaaS venture a sustainable business model? Could it provide NIO with a strong competitive advantage?
This case illustrates different growth strategies in the pharmaceutical industry. R&D management is a critical component of growth strategies, and the case demonstrates the importance of using a holistic framework for R&D when expanding the firm's business footprint. The case serves the purpose of comparing organic and inorganic growth strategies, and identifying the steps that are critical for the execution of these strategies.
This case illustrates different growth strategies in the pharmaceutical industry. R&D management is a critical component of growth strategies, and the case demonstrates the importance of using a holistic framework for R&D when expanding the firm's business footprint. The case serves the purpose of comparing organic and inorganic growth strategies, and identifying the steps that are critical for the execution of these strategies.
The case investigates the impact of the increasing trend of pharmaceutical firms to outsource core research activities to biotech firms and other contract research organizations. The fluid nature of supply chain design in evolving industries is highlighted, and robust supply chain policies to respond to this evolution are proposed.
The case examines the impact of variability in demand and the supply chain on the operations of an oil refinery. The impact of external financial metrics by other stakeholders in the refinery is discussed, and policy measures for the improvement of the operations of the oil refinery are proposed.